(a) New accounts. For purposes of this paragraph,
checks subject to Sec. 229.10(c)(1)(v) include traveler's checks.
(1) A deposit in a new account--
(i) Is subject to the requirements of Sec.
229.10 (a) and (b) to make funds from deposits by cash and electronic payments
available for withdrawal on the business day following the banking day
of deposit or receipt;
(ii) Is subject to the requirements of Sec.
229.10(c)(1) (i) through (v) and Sec. 229.10(c)(2) only with respect to
the first $5,000 of funds deposited on any one banking day; but the amount
of the deposit in excess of $5,000 shall be available for withdrawal not
later than the ninth business day following the banking day on which funds
are deposited; and
(iii) Is not subject to the availability requirements
of Secs. 229.10(c)(1)(vi) and (vii) and 229.12.
(2) An account is considered a new account
during the first 30 calendar days after the account is established. An
account is not considered a new account if each customer on the account
has had, within 30 calendar days before the account is established, another
account at the depositary bank for at least 30 calendar days.
(b) Large deposits. Sections 229.10(c) and
229.12 do not apply to the aggregate amount of deposits by one or more
checks to the extent that the aggregate amount is in excess of $5,000 on
any one banking. day. For customers that have multiple accounts at a depositary
bank, the bank may apply this exception to the aggregate deposits to all
accounts held by the customer, even if the customer is not the sole holder
of the accounts and not all of the holders of the accounts are the same.
(c) Redeposited checks. Sections 229.10(c)
and 229.12 do not apply to a check that has been returned unpaid and redeposited
by the customer or the depositary bank. This exception does not apply--
(1) To a check that has been returned due
to a missing indorsement and redeposited after the missing indorsement
has been obtained, if the reason for return indication on the check states
that it was returned due to a missing indorsement; or
(2) To a check that has been returned because
it was post dated, if the reason for return indicated on the check states
that it was returned because it was post dated, and if the check is no
longer postdated when redeposited.
(d) Repeated overdrafts. If any account or
combination of accounts of a depositary bank's customer has been repeatedly
overdrawn, then for a period of six months after the last such overdraft,
Secs. 229.10(c) and 229.12 do not apply to any of the accounts. A depositary
bank may consider a customer's account to be repeatedly overdrawn if--
(1) On six or more banking days within the
preceding six months, the account balance is negative, or the account balance
would have become negative if checks or other charges to the account had
been paid; or
(2) On two or more banking days within the
preceding six months, the account balance is negative, or the account balance
would have become negative, in the amount of $5,000 or more, if checks
or other charges to the account had been paid.
(e) Reasonable cause to doubt collectibility--(1)
In general. Sections 229.10(c) and 229.12 do not apply to a check deposited
in an account at a depositary bank if the depositary bank has reasonable
cause to believe that the check is uncollectible from the paying bank.
Reasonable cause to believe a check is uncollectible requires the existence
of facts that would cause a well-grounded belief in the mind of a reasonable
person. Such belief shall not be based on the fact that the check is of
a particular class or is deposited by a particular class of persons. The
reason for the bank's belief that the check is uncollectible shall be included
in the notice required under paragraph (g) of this section.
(2) Overdraft and returned check fees. A depositary
bank that extends the time when funds will be available for withdrawal
as described in paragraph (e)(1) of this section, and does not furnish
the depositor with written notice at the time of deposit shall not assess
any fees for any subsequent overdrafts (including use of a line of credit)
or return of checks of other debits to the account, if--
(i) The overdraft or return of the check would
not have occurred except for the fact that the deposited funds were delayed
under paragraph (e)(1) of this section; and
(ii) The deposited check was paid by the paying
bank.
Notwithstanding the foregoing, the depositary bank may assess an overdraft
or returned check fee if it includes a notice concerning overdraft and
returned check fees with the notice of exception required in paragraph
(g) of this section and, when required, refunds any such fees upon the
request of the customer. The notice must state that the customer may be
entitled to a refund of overdraft or returned check fees that are assessed
if the check subject to the exception is paid and how to obtain a refund.
(f) Emergency conditions. Sections 229.10(c)
and 229.12 do not apply to funds deposited by check in a depositary bank
in the case of--
(1) An interruption of communications or computer
or other equipment facilities;
(2) A suspension of payments by another bank;
(3) A war; or
(4) An emergency condition beyond the control
of the depositary bank, if the depositary bank exercises such diligence
as the circumstances require.
(g) Notice of exception--(1) In general. Subject
to paragraphs (g)(2) and (g)(3) of this section, when a depositary bank
extends the time when funds will be available for withdrawal based on the
application of an exception contained in paragraphs (b) through (f) of
this section, it must provide the depositor with a written notice.
(i) The notice shall include the following
information--
(A) A number or code, which need not exceed four digits, that identifies the customer’s account.
(B) The date of the deposit;
(C) The amount of the deposit that is being
delayed;
(D) The reason the exception was invoked;
and
(E) The time period within which the funds
will be available for withdrawal.
(ii) Timing of notice. (A) The notice shall
be provided to the depositor at the time of the deposit, unless the deposit
is not made in person to an employee of the depositary bank, or, if the
facts upon which a determination to invoke one of the exceptions in paragraphs
(b) through (f) of this section to delay a deposit only become known to
the depositary bank after the time of the deposit. If the notice is not
given at the time of the deposit, the depositary bank shall mail or deliver
the notice to the customer as soon as practicable, but no later than the
first business day following the day the facts become known to the depositary
bank, or the deposit is made, whichever is later.
(B) If the availability of funds is delayed
under the emergency conditions exception provided in paragraph (f) of this
section, the depositary bank is not required to provide a notice if the
funds subject to the exception become available before the notice must
be sent under paragraph (g)(1)(ii)(A) of this section.
(2) One-time exception notice. In lieu of
providing notice pursuant to paragraph (g)(1) of this section, a depositary
bank that extends the time when the funds deposited in a nonconsumer account
will be available for withdrawal based on an exception contained in paragraph
(b) or (c) of this section may provide a single notice to the customer
that includes the following information--
(i) The reason(s) the exception may be invoked;
and
(ii) The time period within which deposits
subject to the exception generally will be available for withdrawal.
This one-time notice shall be provided only if each type of exception
cited in the notice will be invoked for most check deposits in the account
to which the exception could apply. This notice shall be provided at or
prior to the time notice must be provided under paragraph (g)(1)(ii) of
this section.
(3) Notice of repeated overdrafts exception.
In lieu of providing notice pursuant to paragraph (g)(1) of this section,
a depositary bank that extends the time when funds deposited in an account
will be available for withdrawal based on the exception contained in paragraph
(d) of this section may provide a notice to the customer for each time
period during which the exception will be in effect. The notice shall include
the following information--
(i) The account number of the customer;
(ii) The fact that the availability of funds
deposited in the customer's account will be delayed because the repeated
overdrafts exception will be invoked;
(iii) The time period within which deposits
subject to the exception generally will be available for withdrawal; and
(iv) The time period during which the exception
will apply.
This notice shall be provided at or prior to the time notice must be
provided under paragraph (g)(1)(ii) of this section and only if the exception
cited in the notice will be invoked for most check deposits in the account.
(4) Emergency conditions exception notice.
When a depositary bank extends the time when funds will be available for
withdrawal based on the application of the emergency conditions exception
contained in paragraph (f) of this section, it must provide the depositor
with notice in a reasonable form and within a reasonable time given the
circumstances. The notice shall include the reason the exception was invoked
and the time period within which funds shall be made available for withdrawal,
unless the depositary bank, in good faith, does not know at the time the
notice is given the duration of the emergency and, consequently, when the
funds must be made available. The depositary bank is not required to provide
a notice if the funds subject to the exception become available before
the notice must be sent.
(5) Record retention. A depositary bank shall
retain a record, in accordance with Sec. 229.21(g), of each notice provided
pursuant to its application of the reasonable cause exception under paragraph
(e) of this section, together with a brief statement of the facts giving
rise to the bank's reason to doubt the collectibility of the check.
(h) Availability of deposits subject to exceptions.
(1) If an exception contained in paragraphs (b) through (e) of this section
applies, the depositary bank may extend the time periods established under
Secs. 229.10(c) and 229.12 by a reasonable period of time.
(2) If a depositary bank invokes an exception
contained in paragraphs (b) through (e) of this section with respect to
a check described in Sec. 229.10(c)(1) (i) through (v) or Sec. 229.10(c)(2),
it shall make the funds available for withdrawal not later than a reasonable
period after the day the funds would have been required to be made available
had the check been subject to 229.12.
(3) If a depositary bank invokes an exception
under paragraph (f) of this section based on an emergency condition, the
depositary bank shall make the funds available for withdrawal not later
than a reasonable period after the emergency has ceased or the period established
in Secs. 229.10(c) and 229.12, whichever is later.
(4) For the purposes of this section, a ``reasonable
period'' is an extension of up to one business day for checks described
in Sec. 229.10(c)(1)(vi), five business days for checks described in Sec.
229.12(b) (1) through (4), and six business days for checks described in
Sec. 229.12(c) (1) and (2) or Sec. 229.12(f). A longer extension may be
reasonable, but the bank has the burden of so establishing.
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